USDCAD has been sitting on the marked support for some months now. The FOMC maintained the dollar interest rates at 5.25%. Although there was a strong consensus to keep hiking the rates in future, this was a huge sign that we may be nearing the end of the current economic cycle. When the FOMC started hiking the rates in March 2022, they raised the rates by 0.75% in four consecutive meetings, then 0.5, then 0.25 and finally 0.00. DXY is rising, USDCAD should follow.
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The market closed below the support. The real confirmation is going to come from the close of the monthly candle. If the monthly candle closes above the support, this idea will still be valid.
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Looks like that was a classic fakeout!. On the Daily TF, Multiple hammer candles are forming. With a hammer candle, price opens and almost immediately the bears take over. However, later in the session , price reaches a point where the bears struggle to push it lower, and price becomes attractive for the bulls. Waves of buyers start to arrive, as they slowly overwhelm the sellers. Eventually, by the close of the session , price closes back above the opening. This is an extremely bullish signal , it means there is more upside to come.
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Price is back above the support. Very nice !
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That was a classic beartrap. Price broke the 1.3200 key support and went down by almost 100 pips, only to come back above the resistance. Many sellers are now trapped at this level, as the market gets ready for the bull run of the year. Classic fakeout !
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Nice bullish momentum coming in strong !
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Here we go again, counting pips. 100 PIPS !
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After the DXY dropped to its lowest in the last one year yesterday to 100.40, USDCAD dropped to 1.3150, which is previous support/resistance. What happens next on the DXY will determine if this support will hold for USDCAD.
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The 1.3100 - 1.3200 support is extremely resilient. Price has been consolidating here for several weeks. But since the DXY is showing bullish signs, the market may be setting up for a bull run on USDCAD.
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Price did not breakout below the 1.3100 support, where the market has been consolidating for weeks. Expecting the support to hold in the coming weeks and bulls to come in at this point.
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Finally , we will be able to confirm if this is a fakeout or a breakout. The FOMC meets today to announce the Dollar interest rates. In the last meeting, the FOMC maintained the rates at 5.52% for the first time since March 2022.If the FOMC maintains the interest rates at 5.25% for the second tome in a row, the DXY may rise from the current levels, and USDCAD may follow. If the FOMC increases the interest rates, then the DXY may fall further, confirming more downside for USDCAD.
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Get ready to start the pip count!
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Finally price is back above the support !
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100 PIPS STRONG !
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200 PIPS STRONG !
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New highs @ 1.3500 !
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The weekly candle closed well above the 1.3200 support. The market is slowly pulling away from this zone !
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The trend is on fire ! New highs everyday !
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250 PIPS FLOATING !
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New highs on the DXY, New highs on USDCAD !
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The weekly candle closed with a deep lower wick as the bulls came in towards the end of the week to push the price back to the open. The volume on the weekly candle was also above average !
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300 PIPS ON THE TREND !
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1.3670 is the new high on the trend !
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New highs on the trend @ 1.3700 !
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Rising oil prices have been giving the CAD strength in the recent few weeks, but as the DXY pushes higher everyday, USDCAD will follow suit in time !
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The dominant bullish trend is back !
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New highs on the trend !..600 PIPS !
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650 PIPS !
Thedeveloper